Save Money on Your Mortgage

6 June 2015, 7:21 pm

Marketwatch had a very informative article on how you can shave years of payments off your mortgage just by paying your mortgage on a bi-weekly basis instead of just once a month. Just don’t let anybody offer to “help” you with your bi-weekly plan for a fee, and don’t use a software program designed to “time” your payments to minimize interest.

The bi-weekly mortgage payment plan is simple. Instead of making 12 monthly payments over the course of a calendar year, you make 26 bi-weekly payments, which means you’re effectively making 13 monthly payments in a calendar year. With the subsequent interest reduction, a borrower typically repays a 30-year mortgage loan in 26 years.